ADELANTE
Institutional Repository

This study investigates the trend of family-owned firms' financial performance after the transition into IPO, specifically in profitability, using selected performance indicators (net revenue, gross profit, net income, and stock prices). For this purpose, the researchers used a statistical method called the trend analysis. Trend analysis determines the patterns and changes of performance among family-owned businesses utilizing five periods after its prior IPOs listing date. Our findings reveal that the three components of income statements, mainly the net revenue, gross profit, net income, and stock value as firm performance indicators, yield the same results wherein we discover that the financial performance of family-owned businesses commonly declines after going public. Clearly, family firms needed to be better positioned as they engaged in the market, knowing that in its first five years, it resulted in consistent declines. Our analysis concludes that the family-firms financial performance in terms of the firm's profitability is in a downtrend direction. Family firms' market value tends to reduce due to negative perceptions. Aside from experiencing adversity in dealing with market timing, it is also the notion of the negative family control perceptions among its investors.